PE ratio relative to earnings growth — is the valuation justified?
1.05
PEG Ratio
PEG ratio is generally unreliable for Financial Services companies — earnings are driven by interest margins and provisions
PEG ratio is generally unreliable for Financial Services companies
1.05
Growth Rate Source
Good Data Quality5-Year EPS CAGR
Current Price
$27.99
TTM EPS
$2.57
P/E Ratio
10.89
Growth Rate
10.4%
5-Year EPS CAGR
Sector
Financial Services
Banks - Regional
Calculated
8/28/2026
11:19:26 PM
Peer Comparison
Sample Size
3 peers
Industry Median PEG
0.86
25th Percentile
0.39
75th Percentile
0.91
ARBV PEG (1.05) vs Industry Median (0.86): 22% premium
Symbol
Company
PEG
P/E
Growth
vs ARBV
PBAM
Private Bancorp of America, Inc.
0.39
11.5
29.2%
-62%
AMBZ
American Business Bank
0.86
10.9
12.8%
-18%
CWBK
CW Bancorp
0.91
9.2
10.2%
-14%
How to Interpret PEG Ratio
PEG < 1.0 — Potentially Undervalued. The stock may be priced below its earnings growth rate, suggesting a potential buying opportunity.
PEG 1.0–2.0 — Fairly Valued. The stock price is roughly in line with its earnings growth. A PEG of 1.0 is often considered "fair value."
PEG > 2.0 — Potentially Overvalued. The stock may be priced above what its earnings growth justifies.
Limitations:PEG ratios are less reliable for financial firms (earnings driven by interest margins), companies with negative/zero earnings growth, and hypergrowth companies (>100% growth) where the ratio may appear misleadingly low. Always use PEG alongside other valuation metrics.
